Interim report Jan-Sept. 2023
Interim report Jan-Sept. 2023
- Book value of land and forest amounts to 41,859 (37,817) TEUR
- Equity amounts to EUR 0.931 (0.928) per share
- Earnings per share EUR 0.026 (0.059)
- Property holdings amounts to 8,094 (7,417) hectares
- Timber volume is estimated at 1,155,000 (1,104,255) cubic meters
- Net sales were 1,095 (1,958) TEUR
- Operating profit was 77.1 (1,174) TEUR
- Changes in value, forest 1,309 (836) TEUR
- Net profit amounted to 944.6 (2,181) TEUR
(Data in brackets refer to the corresponding period previous year)
Latvian Forest Company
Latvian Forest Company AB (publ) is a Swedish listed company that invests in and conducts forestry on favourably valued forest in countries around the Baltic Sea. The three main foundations of the business are, in addition to forest being a sought-after real asset that grows by its own power,
- an expected increase in price levels for Latvian forest and agricultural properties.
- to create added value through active forest management.
- to create value by building up a larger property portfolio.
The expansion is financed through a phased implementation of new share issues as properties are acquired and the business develops. Through Latvian Forest Company, shareholders become co-owners of many properties instead of an individual one, which provides a good risk diversification. The operations conducted in day-to-day forestry create the turnover needed to cover the company's costs over time and eventually generate a surplus.
Latvian Forest Company AB has Euro as its accounting currency, and all reporting is done in Euro. Trading in the share on Spotlight Stock Markets takes place in Swedish kronor.
Status & property holdings
Investments in forest properties have been made continuously, and holdings totalled 8,094 (7,417) hectares at the end of the period. Of these, 6,637 (6,099) were forest and 1,458 (1,319) other land, including 953 (866) hectares of agricultural land. At the same time, the total growing stock was estimated at 1,155,000 (1,104,255) cubic meters after felling, property purchases and sales. Of the total of 8,094 hectares and 1,155,000 cubic meters of growing stock, the company owned 6,387 (5,964) hectares with 810,000 (786,000) cubic meters in Latvia, and 1,708 (1,453) hectares with 346,000 (318,000) cubic meters in Lithuania at the end of the third quarter.
On the total of 6,637 (6,099) hectares of forest land owned by the company at the end of this period, the growing stock is estimated at 1,155,000 cubic meters. The company's management estimates that 280,000 cubic meters can be harvested today. The growing stock that can be felled over the next 10 years is estimated at approx. 415,000 cubic meters. In total, the company estimates that there are 174 m3 of growing forest per hectare. Almost 72% of the company's holdings consist of land types corresponding to bonity classes IA (G36), I (G32) and II (G28). On only 1.2% of the company's holdings, management measures are prohibited due to nature conservation restrictions. More than 78% of the growing stock consists of the three most important industrial wood species: birch, pine, and spruce.
(Map of the existing property holdings)
During the third quarter, a total of approximately 617 TEUR was invested in 12 individual properties of 174 hectares, with a growing stock of approximately 17,133 cubic meters. The average growing stock was approx. 199 cubic meters per hectare of forest land. The company's management has assessed that there are still favourable terms for the acquisition of individual properties, since some foreign property owners consider the conditions to be favourable for exiting the Latvian market.
Felling and clearing
The company has felled 18,358 cubic meters by the end of the third quarter. The average felling price was EUR 40.6 per cubic meter with an income of 745 TEUR. The company has cleared 90.7 hectares and planted 18 hectares by the end of the third quarter.
(Results of mechanical clearing of aspen stands in Latvia)
Sales and earnings
Sales in the third quarter amounted to 619.2 (493.0) TEUR and refers to revenue from felling, i.e., the sale of root items, as well as rental income from agricultural land. Total revenue for the first nine months was 1,095.6 (1,943.1) TEUR. Operating expenses continued to develop satisfactorily, even considering the high inflation rate. The increase in external costs is explained by the fact that the company's management has changed the accounting principles for how costs for felling in the Lithuanian operations are reported. Operating profit was 77.1 (1,173.7) TEUR for the nine months. Operating profit was 240.2 (216.1) TEUR for the third quarter. Net profit for the nine months was 944.6 (2,181.1) TEUR.
The estimated fair value of forest assets totalled TEUR 41,859 (37,817.6). The increase in value is attributable to the company's acquisition of new properties, as well as the average long-term price level for sawlogs and pulpwood. The fair value of growing forest has been calculated on the assets that were in the company as of September 30, 2023. The value is calculated by discounting a 100-year series of estimated felling volumes/sales revenues and forest management costs at a discount rate of 7.25%.
Otherwise, the result is affected by normal costs for clearing, property-related costs such as new property measurements, inventories and stamping of stocks prior to felling, as well as certain costs in connection with felling.
External costs largely consist of purchased services related to forest management, other consulting services such as accounting, auditing, legal advice, costs for travel, rent and transport. Variable costs for purchase commissions have to some extent been recorded as part of the acquisition costs for the individual properties and in these cases do not affect the result. Other variable compensations for clearing are recorded under raw materials and supplies (previously cost of goods sold). In addition, the company records the value of fellings for its Lithuanian operations under raw materials and supplies. This has a limited impact on the company's cash flow.
Timber and forest property market
The timber and pulpwood market has been affected by an expected weakening of the market cycle. The full impact of the sharp rise on financing costs cannot yet be observed in the timber market. This can largely be explained by the effects of sanctions that impede global trade, and which have a particularly large effect on the timber and pulpwood market around the Baltic Sea. The sanctions have been introduced against the two states of aggression, Russia, and Belarus, as a consequence of their attack on Ukraine in 2022.
In the US, too, the market is showing some contradictory signals about the direction the economy will take. For example, the number of building permits increased in August, but then fell in September. Timber is one of the basic commodities for the construction industry. This led to the rise and subsequent decline in the price of timber trading on the NASDAQ stock exchange, which has fluctuated between approx. USD 479/1000 MBFT (approx. 2.36 m3) in September 2023 and USD 510/1000 MBFT in October. This corresponds to the price level of timber on the NASDAQ before the coronavirus pandemic.
The purchase price of premium softwood timber has stabilised at around 100 EUR/m3 in Latvia and Lithuania. This price level is still around 20% higher than the purchase price before the corona pandemic.
During the first nine months 2023, purchase prices for hardwood pulpwood have also stabilised at around EUR 55 per cubic meter. For example, the price for this range was EUR 37 per cubic meter in September 2019. This corresponds to the adjustment for inflation in the Baltics over the same period.
The price of birch veneer logs has also had a constant decline from record levels corresponding to EUR 232 per cubic meter of premium class range at the end of 2022, to EUR 180 per cubic meter in September 2023.
The geopolitical turmoil has been most reflected in the price level of energy wood, including raw materials for wood chips. After the price rose to a peak of EUR 30 per cubic meter, it dropped down to EUR 18 per cubic meter in September 2023.
The company's management observes that the weak Swedish krona has led to a decrease in interest from Swedish investors and an increase in the supply of properties for sale in both Latvia and Lithuania. The price levels expected by sellers are still at a high level, but the company's management is observant of the first signs of a turnaround. This will enable LFC to carry out more acquisitions of forest properties in the coming year at a favourable price.
Financing
The company has borrowed TEUR 1,800 from Swedbank on market terms during the period. Borrowed funds will be used to finance future expansion through the acquisition of real estate in Latvia.
Financing strategy
The Board of Directors has, following comments from and sounding out among shareholders and potential investors, decided that future financing in the form of new share issues will primarily take place within the framework of new share issues with preferential rights for existing shareholders. However, this does not prevent directed issues from being carried out, for example in connection with acquisition of property portfolios or in special situations where a directed issue may be required. The objective is that existing shareholders will not be disadvantaged if a directed share issue is carried out.
Share
At the end of the period, the share capital amounted to EUR 4,106,436 divided into 80,000 Class A shares and 36,583,521 Class B shares. Class A shares represent ten votes and Class B shares represent one vote each. Each share has a quota value of EUR 0.112 in share capital. According to the latest information received by the company, the five largest shareholders in terms of votes control 67.6% of the capital and 67.2% of the votes.
Significant events after the end of the period
Property holdings at the time of this report amounted to 8,225 hectares. At the same time, the total growing stock was estimated at about 1,160,000 cubic meters after felling, property purchases and sales.
Next report
The year-end report for 2023 is scheduled to be published on February 22, 2024.
About this report
This report has not been subject to special review by the company's auditor.
Stockholm, 2023-11-22
Board
For further information, please contact
Aleksandrs Tralmaks, CEO
+37129203972
info@latvianforest.se
Or visit our website: www.latvianforest.se
Latvian Forest Company offentliggör utfall i företrädesemission
29.04.2024
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Latvian Forest Company offentliggör emissionsmemorandum
10.04.2024
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Latvian Forest Company genomför företrädesemission om 27,3 Mkr för fortsatt expansion
02.04.2024
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Ändrat datum för offentliggörande av bokslutskommuniké 2023
19.02.2024
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FLAGGING MESSAGE Galjaden Invest AB has reduced its holding in Latvian Forest Company AB
20.09.2023
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25.08.2023
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COMMUNIQUÉ FROM THE ANNUAL GENERAL MEETING
26.06.2023
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NOTICE LFC ANNUAL GENERAL MEETING 2023 - MAY 30, 2023
30.05.2023
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Interim report January-March 2023
24.05.2023
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THE BUYER WITH WHOM LATVIAN FOREST COMPANY AB HAS NEGOTIATED THE SALE OF ITS TWO LATVIAN SUBSIDIARIES HAS ANNOUNCED THAT IT DOES NOT INTEND TO COMPLETE THE CONTEMPLATED TRANSACTION.
29.04.2023
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LATVIAN FOREST COMPANY CONTINUES WORK TO COMPLETE THE SALE OF ITS SUBSIDIARIES IN LATVIA TO SWEDEN BASED, WELL ESTABLISHED COMPANY.
17.04.2023
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Changed date for Year-end report 2022
20.02.2023
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LATVIAN FOREST COMPANY ENTERS INTO LETTER OF INTENT WITH SWEDEN BASED, WELL ESTABLISHED COMPANY REGARDING THE SALE OF ITS SUBSIDIARIES IN LATVIA
15.02.2023
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Interim report Jan-Sept. 2022
23.11.2022
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New date for Interim Report January-September 2022
14.11.2022
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Interim report Jan-June 2022
22.08.2022
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COMMUNICATION FROM ANNUAL GENERAL MEETING
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Interim Report January - March 2022
27.05.2022
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Last day for trading in BTA B is 2022-03-11
09.03.2022
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CHANGED DATE FOR YEAR-END REPORT 2021
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LATVIAN FOREST COMPANY'S PREMIUM ISSUE SUBSCRIBED
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Correction: Carry out a rights issue of SEK 25 million for continued expansion
07.01.2022
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LATVIAN FOREST COMPANY AB (PUBL.) COMPLETES PREPARATION ISSUE OF SEK 25 MILLION FOR CONTINUED EXPANSION
07.01.2022
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LATVIAN FOREST COMPANY AB (PUBL.) HAS FINISHED THE BUSINESS REGARDING THE PURCHASE OF ALL SHARES OF UAB SILUONA.
02.12.2021
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CHANGED DATE FOR INTERIM REPORT JAN-SEPT 2021
12.11.2021
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LATVIAN FOREST COMPANY AB (PUBL.) HAS SIGNED AN AGREEMENT REGARDING THE PURCHASE OF ALL SHARES OF A LITHUANIAN COMPANY OWNING 1,338 HECTARES OF LAND WITH 301,000 m³ OF LUMBER.
01.11.2021
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Interim report Jan-June 2021
30.08.2021
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CORRECTION: UPDATE IN PREVIOUS PRESS RELEASE "CHANGED DATE FOR INTERIM REPORT JANUARY-JUNE 2021" REGARDING MAR CLASSIFICATION.
23.08.2021
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ANNUAL REPORT AND CONSOLIDATED FINANCIAL STATEMENTS FOR LATVIAN FOREST COMPANY AKTIEBOLAG 2020
03.08.2021
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COMMUNICATION FROM ANNUAL GENERAL MEETING
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Interim report January-March 2021
06.06.2021
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NOTICE TO ATTEND THE ANNUAL GENERAL MEETING OF LATVIAN FOREST COMPANY AB (PUBL)
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Latvian Forest Companys företrädesemission registrerad
27.05.2021
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Latvian Forest Company's rights issue oversubscribed
07.05.2021
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LATVIAN FOREST COMPANY PUBLISHES PROSPECTUS
22.04.2021
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Latvian Forest Company provide a rights issue of approximately 78.2 MSEK for continued expansion
12.04.2021
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Changed release date for Interim Report Jan-Mar 2021
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Interim report Jan-Sept. 2020
30.11.2020
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AMENDED DATE OF INTERIM REPORT JAN-SEPT. 2020
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LATVIAN FOREST COMPANY AB (PUBL.) HAS COMPLETED THE TRANSACTION REGARDING THE PURCHASE OF ALL SHARES IN LATFOLDE AB
30.10.2020
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Interim report Jan-June 2020
26.08.2020
Interim report Jan-June 2020
- Book value of fixed assets 12,264.8 (0) TEUR
- Equity amounts to 0.669 (1.154) EUR per share
- Earnings per share 0.024 (0.474) EUR
- Property holdings amount to 4,324* (0) hectares
- Timber volume estimated at 500,000* (0) cubic meters
- Net sales 103.7 (15.6) TEUR
- Operating profit -498.6 (0) TEUR
- Change in value, forest 1,080.7(0) TEUR
- Net profit 498.3 (9,726.4) (0) TEUR
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LATVIAN FOREST COMPANY AB HAS SOLD 195.7 HECTARES OF FARMLAND AND A 2.3 HECTARE FARM.
20.07.2020
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COMMUNIQUÉ FROM THE ANNUAL GENERAL MEETING
29.06.2020
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NOTICE OF ANNUAL GENERAL MEETING OF LATVIAN FOREST COMPANY AB (PUBL)
29.06.2020
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Interim report Jan-Mar 2020
25.05.2020
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Arbitration Institute has adjudicated on claims from former CEO Fredrik Zetterström
20.05.2020
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Regarding the company's former CEO Fredrik Zetterström, the Arbitration is expected to be on May 20, 2020.
28.04.2020
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Year- end report 2019
20.02.2020
Period January-December 2019
- Book value of fixed assets 8,660 (24,574) TEUR
- Equity amounts to 0,665 (1,145) EUR per share)
- Property holdings amount to 3,816 (10,452) hectares
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MINUTES HELD AT THE ANNUAL GENERAL MEETING OF LATVIAN FOREST COMPANY AB (PUBL)
20.12.2019
Minutes kept at the Annual General Meeting of Latvian Forest Company AB (publ), org. 556789-0495, at 10.00, Monday, December 16, 2019 in Stockholm.
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INTERIM REPORT JAN-SEP 2019
22.11.2019
- Equity amounts to EUR 0.604 (1,125) per share
- Profit after financial items 9,523.4 (2,020.5) TEUR
- Earnings per share EUR 0.464 (0.099)
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LATVIAN FOREST COMPANY AB HAS SIGNED A PURCHASE AGREEMENT FOR THE ACQUISITION OF 3,460 HECTARES OF FOREST AND AGRICULTURAL LAND IN LATVIA.
12.11.2019
Parts of the acquisition have already been taken up and the remaining shall be taken later.
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NOTICE OF EXTRAORDINARY GENERAL MEETING LATVIAN FOREST COMPANY AB (PUBL)
12.11.2019
Shareholders wishing to participate in the Meeting shall be included in the share register kept by Euroclear Sweden AB ("VPC) and report their participation no later than Wednesday December 11, 2019.
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Former CEO and Board member Fredrik Zetterström has called for arbitration against Latvian Forest Company AB.
08.10.2019
LFC informs that its past CEO and board member Fredrik Zetterström has called for arbitration against Latvian Forest Company AB regarding profit sharing corresponding to EUR 378,500.
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INTERIM REPORT JAN-JUN 2019
23.08.2019
All shares in the subsidiaries have been sold, leading to a surplus of 10,803 TEUR
- Equity amounts to EUR 1,154 (0.676) per share
- Profit after financial items 9,726.4 (18.3) TEUR
- Earnings per share EUR 0.474 (0.001)
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Record day to receive dividends
01.07.2019
Today, Monday, July 1, 2019, is the record day to receive a dividend. According to a resolution of the Annual General Meeting dividend to the shareholders shall be paid EUR 0.54 per share or a total of EUR 11 075 973.
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Annual Report and Consolidated Financial Statements for Latvian Forest Company Aktiebolag (publ)
03.06.2019
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INTERIM REPORT JAN-MAR 2019
24.05.2019
Book value of fixed assets amounts to 24,733.2 (21,924.3) TEUR
- Equity amounts to 1,117 EUR (1,034) per share
- Earnings per share -0.028 (0.008) EUR
- Property holdings amount to 10,614 (9,665) hectares
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NOTICE OF THE ANNUAL GENERAL MEETING OF LATVIAN FOREST COMPANY AB (PUBL)
23.05.2019
Notice of the Annual General Meeting of Latvian Forest Company AB (publ).
Shareholders of Latvian Forest Company AB (publ), org. No. 556789-0495, (the "Company") is hereby invited to the Annual General Meeting on Thursday, June 27, 2019, at 10:00 a.m. in Galjaden Fastigheter's premises on Linnégatan 18 in Stockholm.
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Chairman of the Board Ted Alvenius leaves his post as board member and chairman of Latvian Forest Company AB with immediate effect.
20.05.2019
LFC informs that Chairman of the Board, Ted Alvenius, is of a different opinion than the remaining Board of Directors regarding a transaction involving compensation for value increase in connection with the sale of all shares in the operating subsidiaries.
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Disclosure Notice
16.04.2019
Galjaden Invest AB has increased its holding in Latvian Forest Company AB to 20.03%.
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Press Release - sale of all shares in SIA Latvijas mezu kompanija and Baltic Forest IV SIA.
08.04.2019
Latvian Forest Company has, in accordance with a resolution at the Extraordinary General Meeting on March 27, 2019, completed the sale of all shares in SIA Latvijas mezu kompanija and Baltic Forest IV SIA.
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Disclosure Notice
29.03.2019
Nils Robert Persson has increased his holding in Latvian Forest Company AB.
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NOTICE FROM EXTRAORDINARY ANNUAL GENERAL MEETING
27.03.2019
Latvian Forest Company AB (publ) held the Extraordinary Annual General Meeting on March 27, 2019. The meeting resolved on the sale of all shares in the operating subsidiaries SIA Latvijas Mezu Kompaniju and Baltic Forest IV SIA to SCA Mezs Latvija, SIA
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Summons to Extraordinary General Meeting of shareholders in Latvian Forest Company AB (publ)
13.03.2019
The shareholders of Latvian Forest Company AB (publ), Reg. No. 556789-0495 ("The Company") are hereby summoned to the Extraordinary General Meeting of shareholders to be held on Wednesday, March 27, 2019 at 10.00 in Galjaden Fastigheter premises on Linnégatan 18, Stockholm.
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Latvian Forest Company undertecknar aktieöverlåtelseavtal med SCA Mezs Latvija
08.03.2019
LATVIAN FOREST COMPANY SIGNS SHARE TRANSFER AGREEMENT WITH SCA MEZS LATVIA
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Bokslutskommuniké 2018
22.02.2019
- Bokfört värde på mark- och skogstillgångar uppgår till 24.574 (21.323)TEUR
- Eget kapital uppgår till 1,145 (1,027) EUR per aktie
- Fastighetsinnehaven uppgår till 10.452 (9.599) hektar
- Virkesvolymen uppskattas till ca 1.015.000 (995.160) kubikmeter
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Latvian Forest Company signs letter of intent with Svenska Cellulosa Aktiebolaget SCA with a view of selling the entire share capital of all its operating subsidiaries
04.02.2019
Latvian Forest Company AB signs letter of intent with Svenska Cellulosa Aktiebolaget SCA with a view of selling the company’s operations by way of sale of all shares in the operating subsidiaries SIA Latvijas mezu kompanija and Baltic Forest IV, SIA. The total sale price is estimated to 26 000 000 Euro.
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Interim Report January - September 2018
23.11.2018
- Book value on land and forest assets of 23.840 (21.062) TEUR
- Owners’ Equity per share was 1,125 (0,979) EUR
- Property holdings of 10.357 (9.416) hectares
- Timber volume was 1.016.600 (960.000) cubic meter
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Interim Report January - June 2018
23.08.2018
- Book value on land and forest assets of 22.137 (20.850) TEUR
- Owners’ Equity per share was 1,047 (1,068) EUR
- Property holdings of 9.877 (9.368) hectare
- Timber volume was 1.034.000 (940.000) cubic meter
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Come follow us on Instagram!
17.08.2018
Come follow us on Instagram
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European Foresters' Orienteering Championships 2018
01.08.2018
We at Latvian Forest Company are proud supporters of orienteering in Latvia.
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Interim Report January - March 2018
24.05.2018
- Book value on land and forest assets of 21.924,3 (20.829,8) TEUR
- Owners’ Equity per share was 1,034 (1,06) EUR
- Earnings per share 0,008 (0,0039) EUR
- Property holdings of 9.665 (9.368) hectare
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Interim Report January - March 2017
22.05.2017
- Book value on land and forest assets of 20.829,8 (19.228) TEUR
- Owners’ Equity per share was 1,06 (1,03) EUR
- Earnings per share was 0,0039 EUR
- Property holdings of 9.368 (8.590) hectare
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Bronsstädet AB largest shareholder
23.09.2014
Bronsstädet AB (556612-1124) has purchased 1.878.616 B-shares in Latvian Forest Company AB (publ). The ownership, after purchases, corresponds to 14.81 percent of capital and 14.01 percent of votes which makes Bronsstädet AB the largest shareholder in Latvian Forest Co.
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Acquisitions will be completed
04.03.2014
Following the completion of its due diligence analyses, the Latvian Forest Company AB has decided to complete the previously announced acquisitions.
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